Essentials of Marketing 7th Edition by Charles Lamb,Joe Hair,Carl McDaniel

Exercise 2

Discuss the impact of multinational firms on the world economy. Multinational corporations are international traders that regularly operate across national borders. Because of their vast size and financial, technological, and material resources, multinational corporations have a great influence on the world economy. They have the ability to overcome trade problems, save on labor costs, and tap new technology. However, some countries are beginning to block foreign investment by multinationals.
2.1 Rubbermaid, the U.S. manufacturer of kitchen products and other household items, is considering moving to global marketing standardization. What are the pros and cons of this strategy?
2.2 Do you believe that multinationals are beneficial or harmful to developing nations? Why? What could foreign governments do to make them more beneficial?